Figures published by Reita suggest advisers are expressing increasing interest in the vehicles ahead of the opening of the UK Reits market in January.
A survey of 200 advisers carried out by NMG Research on behalf of Reita, the industry body representing Reits providers, found 44% intended to put Reits into clients’ portfolios, an increase of 10% on similar research six months ago.
The level of awareness of Reits has also increase, with fewer than 1-in10 advisers surveyed saying they are “not at all informed” about Reits.
Those considered to be “general practitioner advisers” are said to be better informed than wealth managers, pensions advisers and even compliance staff.
Reita says despite lack of awareness among pensions advisers, of those advisers recommending collective property schemes, 72% thought pension funds were the best vehicle for this.
Some 90% of advisers expecting to put Reits into clients’ portfolios already recommend investments in property funds, rather than necessarily waiting until the market for UK Reits launches in January.
However, more than half, 53% of all advisers questioned do not know whether their clients will prefer residential to commercial property as the underlying asset held by Reits.
Reita says the growing awareness is good for the industry, but that further educational work is required, and then also over the longer term.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
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